CB Financial Services, Inc. Announces Sale of Two West Virginia Branches to Citizens Bank of West Virginia, Inc.
CB Financial Services, Inc. (the "Company") (NASDAQ: CBFV), the holding company for Community Bank, announced today that it and Community Bank have entered into a Purchase and Assumption Agreement to sell two West Virginia branches. The Company and Community Bank have agreed to sell their Buckhannon and New Martinsville branches to Citizens Bank of West Virginia, Inc. ("Citizens"), the bank subsidiary of Citizens Financial Corp. (OTC: CIWV), headquartered in Elkins, WV.
The sale of these branch locations is a continuation of the branch optimization strategy outlined by the Company in February 2021, and allows for Community Bank to focus on its core markets surrounding Southwestern Pennsylvania as well as advance efficiency throughout the organization. Of the Company's entire branch network, these two locations were geographically the furthest from the Company's headquarters. Following the closing of this transaction, and the consolidation of six additional branches previously announced, the Company will operate 14 locations in its branch network in southwestern Pennsylvania and West Virginia.
Pursuant to the terms of the Purchase and Assumption Agreement, Citizens has agreed to assume certain deposit liabilities and to acquire certain loans, as well as cash, real property, personal property and other fixed assets associated with the two branches.
The deposit and loan balances at the branch locations as of May 31, 2021 were approximately $101.9 million, and $6.3 million, respectively. Citizens will pay a 5% deposit premium on the total deposits transferred. Subject to obtaining the necessary regulatory approvals, the pending sale is expected to close in the fourth quarter of 2021 and is expected to result in a gain on sale. Customers of these branches will receive additional information regarding the transaction in the coming months.
Nathaniel S. Bonnell, President and Chief Executive Officer of Citizens Bank of West Virginia stated, "Citizens' purchase of these branches provides an outstanding opportunity for us to increase our presence and commitment in the Buckhannon market as well as expand our footprint into New Martinsville. This acquisition is strategically beneficial to both Citizens and Community, and we are excited to welcome these West Virginia clients into the Citizens family."
Luse Gorman, PC is serving as legal counsel to Community Bank, and D.A. Davidson & Co. is serving as financial advisor. Jackson Kelly PLLC is serving as legal counsel to Citizens, and Ategra Capital Management, LLC is serving as financial advisor.
About CB Financial Services, Inc.
For more information about CB Financial Services, Inc. and Community Bank, visit our website at www.communitybank.tv.
About Citizens Financial Corp.
For more information on Citizens Financial Corp or Citizens Bank of West Virginia, Inc., visit us online at www.citizenswv.com.
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